How to write an ICO whitepaper

Write a good white paper

ICOs are a great way for blockchain-based startups to generate funds for their project. While there aren't as many regulations and guidelines for hosting an ICO as there are for IPOs in the fiat world, there is one specific requirement that all ICOs must meet. This is a white paper.

A white paper tells investors what your project is about. It shows how your project solves the problem you want to solve, how the technology works, how the token is used and who the team member is. It's kind of like a pitch for the investors, only it's read by a far larger audience and it's very important.

Your white paper is the best way to let your investors know about your project and get them interested enough to invest in it. Therefore, the following functions should be included in the white paper.

The problem that solves your project
Why did you create the project or service? Every new project tries to solve an existing problem or a problem that will arise in the foreseeable future. That's the first thing to highlight in your white paper so that people know the need for a project like yours.

How your project solves the problem
This is arguably the most important part of your whitepaper. Now that you have determined what the problem you are trying to solve, it is time to show your solution.

You should try to show how your project solves the problem you are presenting and why it is important to solve it. Your target audience can be anyone in the world or a specific pool of people; therefore, you must offer the problem and the solution independently.

How the token works in the ecosystem of your project
When you host an ICO, you basically offer the tokens of your cryptocurrency that will be used in your blockchain project. If your potential investors aren't sure how to use the token, they will be wary of buying coins.

People want to buy coins at ICOs only because they are cheap at the time and because they believe their value will mature greatly in the future. If you don't see any signs of it in the white paper, you won't even reach your soft cap.

Hence, you should talk about the tokens your project will use and emphasize why their value will increase in the future. Part of this is identifying the needs for your project in the previous points.

The team behind the project
It is important to have a capable and competent team working on the development of the project. At the time of the ICO, creators generally have no product to show. What they have is a team working on the project. Many creators think that they can get an engineer or a developer after they have the necessary resources, but it is important that they have qualified personnel beforehand; preferably those with prior knowledge of the blockchain industry. If you have such staff, make sure to talk about it in your white paper and share it with the investors who work with you. When they can see the faces and story of the team members, they'll feel more comfortable when they trust and believe in the project.

The future plans
As already mentioned in the previous point, you will probably not have a finished product at the time of the ICO. But you can show the roadmap that you will follow in the future. Provide an accurate breakdown of the stages of your project and how the funds from the ICO will be used. The second part is even more important than the first. Try to set specific deadlines for introducing different phases and services. You might only have use cases at the time of ICO, but if you have a detailed roadmap and something that proves your dedication (like a beta version) then it works in your favor.

Writing a proper white paper is an essential part of getting the funds you need from an ICO. With all of this information in your whitepaper, you don't have to worry about the beautification or attractiveness of the layout. When reaching out to researchers and scientists, you have a professional and research-oriented approach to the presentation of information. If you are targeting a wider audience, try breaking the information down into lay terms.